Rhode Island lawmakers will face a tougher fiscal climate when a new legislative session begins on Jan. 7 — with a looming deficit of about $300 million for the next fiscal year.
The state has enjoyed a string of consecutive surpluses in recent years, thanks to a gusher of federal COVID aid.
But the cost of government continues to grow more than state revenue, so a return of the annual deficits caused by that long-term imbalance is expected. State law requires the budget to be balanced by the July 1 start of the next fiscal year.
Legislative leaders have been reluctant to support broad-based tax increases, particularly for upper income residents. More discussion on this is expected in the new session due to the changing fiscal outlook.
Rhode Island’s 113-member legislature begins meeting each year on the first Tuesday in January. The part-time General Assembly typically meets a few days a week before going on recess in June.
During elections earlier this year, Republicans gained one seat in the 75-member House, boosting the GOP caucus to 10 members, but they lost one seat in the 38-member Senate, cutting the presence there to four members.
As usual, a number of challenging issues remain unresolved as lawmakers return to the Statehouse, including the state’s housing crisis, a shortage of primary care providers, and Rhode Island’s lagging status compared to neighboring states on reimbursement for Medicare and Medicaid. Both chambers have targeted some of these topics with legislation in recent years.
The Washington Bridge situation, a frustration for many motorists, is expected to be a topic for meetings of the House Oversight Committee.
In the Senate, fallout is expected from a recent challenge to the leadership of Senate President Dominick Ruggerio by his outgoing number two, Majority Leader Ryan Pearson.
Senate Whip Val Lawson received the votes during a recent caucus to succeed Pearson as majority leader, and in keeping with legislative culture, it would not be surprising if some of the senators who backed Pearson lose committee chairmanships.
Ruggerio and House Speaker Joe Shekarchi are expected to win the support of their members for new two-year terms to their leadership roles.
One subtext in the new session will be the approach of the 2026 statewide campaign season and the next race for governor.
Gov. Dan McKee has said he will seek re-election and he faces an expected primary rematch with former CVS Health executive Helena Foulkes. If McKee does not run, Shekarchi — who has more than $3 million in his campaign account — could jump into the Democratic race.
